I would avoid HOV or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $4.91 to $4.77 a share, and then below $4.65 a share with high volume. If we get that move, then HOV will set up to re-test or possibly take out its next major support levels $4 to $3.50 a share.
Another earnings short-squeeze prospect is mining equipment manufacturer Joy Global ( JOY), which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect Joy Global to report revenue of $1.12 billion on earnings of $1.12 per share.
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